Level Global Investors co-founder Anthony Chiasson and former Diamondback Capital Management trader Todd Newman have a few more allegations to fight in court.

Prosecutors yesterday added new securities fraud charges against Chiasson and Newman, bringing the total number of charges to 10. The grand jury also named former SAC Capital Advisors trader Jon Horvath and Whittier Trust Co.'s Danny Kuo.

The four men were arrested and initially charged last month, along with three other men who have pleaded guilty and who are cooperating with prosecutors.

The four remaining defendants are all free on bail.

According to U.S. Attorney Preet Bharara, the seven were members of a "criminal club," earning more than $60 million on traded confidential information.

From the current issue of

The ratio calendar combination spread couples two ratio calendar spreads, one using calls and the other using puts. The call strike prices are higher than the put strike prices. This strategy is complex and profit is limited, but if a high amount of time value is involved in the short positions, that profit can be substantial and risk is still limited.